After consecutive months of appreciation, negotiations, and bidding wars, modest numbers this month became a sign that the market has returned to a semblance of ‘normal.’ The housing market ended May with 3,652 properties on the market, representing an increase of 448 properties from the previous month, which is seasonally on-trend. In addition, closed sales increased 3.75 percent from the last month, keeping supply and demand relatively balanced.
In May, the attached and detached markets had an equal balance of supply and demand. Both markets had the highest number of standing inventory in the $500,000 to $749,999 price points. The most significant difference was the proportion of the list. For attached properties, that price range made up 29.87 percent of the market, and for detached properties, it made up 41.72 percent of the market. There are over four times more single-family detached properties than attached properties between $500,000 and $749,999.
“As summer approaches and Denver continues to see a shift from the real estate market’s peak, we will see changes in how the market operates compared to the beginning of the year,” commented Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “Denver Metro’s housing market will be the story of two halves. The first year with unprecedented appreciation and the second half of the year with a return to normalization. The effects of higher interest rates have not been visible yet and most likely will not be seen until after the summer. This could translate to more inventory, lower or flat prices, and longer days in the MLS. Because of the build-up of buyers and low inventory, buyer demand has continued to outpace supply for now.”
Year-to-date, the market has seen 7.18 percent fewer homes closed throughout the entire market than the previous year. However, even with fewer purchases, the market has transacted over $1 billion more in sales volume than the last year, indicating how high prices have soared from the previous year. This is also stated in the close-price-to-list-price ratio of105.33 percent, down from the last month.